CEB Performance at Oz Dismal

Qantas Leads Pack

 12 March 2015

Despite low cost frills, Budget carrier Cebu Pacific failed to fill its seats to Sydney as the airline manages to sell just 50.4 per cent of its offered seats last year, making it the worst performing airline to Australia by load factor.

Total load factor to Manila stands at 74.7 per cent in 2014 according to reports published by Australia's Bureau of Infrastructure, Transport and Regional Economics (Bitre) under the Department of Infrastructure and Regional Development.

Meanwhile, the more expensive full-service carrier Qantas filled 88.7 per cent of its offered seats to Manila, growing 8 per cent year on year which was also the airline's best performing route by loads.

Philippine Airlines also improved filling its offered seats to 70.4 per cent despite new services offered by Cebu Pacific. The airline also manages to grow Brisbane from 19,528 pax in 2013 to 31,794 in 2014.

PAL operates flights from Manila to Sydney, Melbourne, Brisbane and Darwin, while Cebu Pacific and Qantas operates flights to Sydney.

4 comments:

  1. Goes to show that on longhaul, full service airlines are the way to go. I hope that PAL can see this and reconfigure the economy class seats of their A330s to 8 abreast and premium economy to 7. All classes should have individual seat back TVs.

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  2. Weird how CAPA still thinks long-haul low-cost are the future while they are generally struggling (even AirAsia X to some extent). Sad. I kind of want Cebu Pacific to succeed, if only to keep prices low (and I mainly support PAL), but I don't know if people are really willing to spend hours on a cramped plane with no IFE. PAL has been like that lately but at least they offer wireless IFE which, to my knowledge, is free. CebPac does as well but it has a fee. Also, at least PAL has free food, on CebPac you have to pay for your food. Finally, I think PAL is planning to move back into a higher level of service under Tan.

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  3. Fact: CEB has a 50.4% load factor compared to Qantas (88%) and PAL (70%).
    Here is another fact. CEB uses a 436 seat plane while Qantas and PAL barely have up to 300 passengers.

    So CEB has around 218 passengers vs. Qantas (267/300) and PAL (210/300).

    It seems CEB is doing very badly (when they aren't).

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    Replies
    1. However, remember that the fares are cheaper and thus load factors need to be higher than usual in order to make profits. It doesn't matter how many seats there are in a plane, you still need to fill those seats. 50% load factors are already bad for full service carriers. Thus, it's even worse for a low-cost carrier, which would normally require 80% load factors or higher just to be profitable. Another worrying fact is that, in the first place, CebPac's load factors are still low despite having lower fares than PAL or QANTAS. No wonder CebPac is pulling out of Dammam, it really seems its long-haul operation (apart from Dubai) is struggling.

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